- The price of XRP recently surged to $91 on Kraken, eliciting bullish expectations from analysts.
- Some suggested the incident was a glitch, while others blamed it on the current token’s liquidity dynamics.
XRP remains plagued by the bearish sentiment gripping the market. After breaking under its key support, the native token of the XRP Ledger (XRPL) dived to as low as $2.08 on Wednesday. Meanwhile, technical analysts like Ali Martinez warned that the asset is teasing a deeper dip below $2.
XRP Price Reaches a $91 ATH on Kraken
Before that, though, XRP exhibited a very peculiar behavior on Kraken, which several users noticed. As a result, the event sparked various speculations ranging from bullish to bearish expectations in the near term.
The pseudonymous Dark Defender, another technical analyst, confirmed XRP’s strange movement after his Kraken trading account flashed a series of alarming notifications at around 5:19 am CET (4:19 am UTC). According to the chart he shared on X today, the token briefly skyrocketed to $91.63, leaving an ultra-long wick on the hourly chart. Strangely, the token did that right after a deep dive at $0.20, a price it last experienced in early January 2021.
What Did It Mean?
Some members of the crypto community considered the pattern as bullish. They believed that it was a taste of things to come. Others dismissed the event as a possible glitch in Kraken’s system.
However, reviewing the historical charts of XRP, Bitcoin (BTC), and Ethereum (ETH) revealed that the incident was not random noise. A thread in a similar post by Kevin Cage, a widely followed crypto trader on X, explained that an exchange prints a wick beyond the normal volatility range when its order book is very thin. One suggested that someone must have tested the upper liquidity layer during that instance. The individual claimed that the wick’s top end represented a vacuum block.
Egrag Crypto, a popular technical reader, backed up the abovementioned analysis. He pointed out that when the market and order books are thin, even a small cash injection can trigger significant price actions. In this case, each dollar added in limited orders tends to amplify price swings.
Egrag likened the impact of such a scenario to the October 10 liquidations that wiped out over $19 billion leveraged positions, except that the recent incident was a limited buy that pushed XRP’s price to the upside.
